United Airlines Holdings Inc.

Overview Key strengths Key risks Third-largest U.S. airline, with a comprehensive route network and solid market position in major travel markets. Operates in the cyclical, price-competitive, and capital-intensive airline industry. Strong liquidity to help it survive the uneven and protracted recovery from the COVID-19 pandemic. Risks to recovery from the pandemic, including potential new variants of the virus and high fuel prices exacerbated by the Russia-Ukraine conflict. Heavy capital spending commitments to modernize its fleet and increase the average size of planes that mostly serve the domestic U.S. market. Global oil prices were already increasing in January and February 2022 before the Russian invasion of Ukraine exacerbated the situation substantially. There is considerable uncertainty around the future path of oil

...United faces much higher fuel costs due to the increase in crude oil prices. Global oil prices were already increasing in January and February 2022 before the Russian invasion of Ukraine exacerbated the situation substantially. There is considerable uncertainty around the future path of oil prices. We believe they will average materially above 2021 levels in 2022 but decline below the current war-induced levels and anticipate a similar path for jet fuel prices. United Airlines Holdings' (United Holdings) annual report states that a $1 per barrel (/bbl) increase in the cost of jet fuel would raise its fuel expense by $102 million if it were operating the same...

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